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3 1262 08483 0164 

Registry No. 266-3-01 

NATIONAL RECOVERY ADMINISTRATION 

PROPOSED CODE OF FAIR CO1MPETITION 

FOR THE 

SILK, RA YON, AND 

SYNTHETIC FABRICS SALES AND 

DISTRIBUTING INDUSTRY 

AS SUBMITTED ON AUGUST 31, 1933 

WE 00 OUR PART 

' " ... 

The Code for the 

Silk, Rayon, and Synthetic Fabrics Sales and Distributing Industry 

in its present form merely reflects the proposal of the above-mentioned I 

industry, and none of the provisions contained therein are 

to be regarded as having received the approval of 

the National Recovery Administration 

as applying to this industry 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

For sale by the Superintendent of Documents, Washington, D.C. - - - - - • - - Price 5 cents 
SUBMITTED BY 

SILK .A.ND RAYON FABRIC SALESMEN'S ASS~CIATION, INC. 

(II) 
PROPOSED CODE OF FAIR COMPETITION FOR THE SILK, 

RAYON, AND SYNTHETIC FABRICS SALES AND DISTRIBUTING INDUSTRY 

ARTICLE I-PU RPOSES 

The purposes of this Code are : 

1. To effectuate the policy declared u1 Title 1 of the National 

Industrial Recovery Act. 

2. To promote the welfare of the salesmen employed in the distribution of silk, rayon, and synthetic fabrics. 

3. To elevate the standards of honor, integrity, courtesy, and to 

strengthen the good will between salesmen and their employers. 

4. To secure to each salesman a fair opportunity to earn a decent 

1i ving wage. 

ARTICLE II-MEMBERSHIP AND MONOPOLIES 

The association shall impose no inequitable restrictions on admission to membership therein, and shall truly represent the industry. 

This code is not designed to promote and will not permit monopolies or monopolistic practices. 

ARTICLE III-DEFINITIONS 

The National Industrial Recovery Act shall hereafter be referred 

to as The Act. 

The tern1 " salesman " shall mean a person employed in the selling of silk, rayon, and synthetic fabrics. 

" Employer " and " person " .are to include natural persons, partnerships, associations, corporations, or selling agents engaged in 

the wholesale distribution of silk, rayon, and synthetic fabrics. 

'' Accounts " shall be interpreted to include all natural persons, 

partnerships, associations, and corporations to whom .an employer 

has sold merchandise through a salesman, whether the said account 

be acquired by said salesman or given to him by his employer. 

By the term " Salesman's interest" in a salesman's account is 

meant the exclusive right to receive commission on all transactions ,of employer with said account for a period of six months from 

initial sale. 

"Initial sale" shall be defined as a salesman's first accepted order 

followed by delivery and acceptance of goods by the customer. 

ARTICLE IV-MINIMUM COMMISSION w AGE 

No salesman shall be employed unless the minimum wage against 

-commission be $3-5.00 per week. In the event that the earned com1nission does not exceed the minimum drawing account or the agreed 

9723-33 (1) 
2 

drawing account, then such drawing account shall be considered 

a salary. 

ARTICLE V-MINIMUM COMMISSION 

Salesm.en shall receive on all net sales a miniinum commission of 

2% on dyed and finished products and 1 % on grege goods. 

A sale is dee1ned to have been made and the services of a salesman 

to have been fully performed, and his commissions are deemed to 

have been earned when the goods sold are delivered and accepted 

by the customer. Incapacity of the customer to pay for goods sold 

and d.eli.vered shall in no case deprive the salesman of his earned 

conun1ss1on. 

ARTICLE VI-METHOD OF ACCOUNTING 

A statement showing the amount of business transacted b,y a sales'-

man and the accounts with whom such business was done shall be 

issued by the employer to the salesman on the 10th day of each 

succeeding month. 

Duplicate copies of sales and credits are to be furnished to each 

salesman daily. 

ARTICLE VII-ARBITRATION 

The salesmen, desiring to cooperate with recovery because of the 

emergency declared to exist by the Congress of the United States,. 

and in order that a salesman may be insured a regular and periodicincome despite unfair practices resulting in Court litigation with 

its unavoidable delays and costliness, thereby engendering ill-feeling 

between employer and salesman, do therefore establish that compulsory arbitration for the settlement of all discords be the practice· during the period of the emergency. 

Any and all complaints, differences, controversies, or questions 

arising under or out of this code or concerning the interpretation orapplication of any provision thereof shall be submitted to arbitratio.n 

in accordance with the :following provisions: 

1. A salesman's complaint in writing is to be filed with the Association. 

2. The association shall within ten days thereafter file copies of 

said complaint with the employer and the Silk Association of America together with a list of two arbitrators chosen by the association. 

3. The Silk Association of America shall within ten days after 

service of complaint file with the association the employer's answer, 

together with its list of two arbitrators. Issue shall be joined on 

receipt of answer by the association. 

4. Within ten days after joinder of issue the chosen arbitrators 

shall select an umpire. 

5. Arbitrators so selected shall constitute the Board of Arbitration. 

6. Within ten days after selection of the Board of Arbitration, 

hearings on issues shall commence. 

1. Such Board of Arbitration shall render a decision within ten 

days after case has been finally submitted. 
3 

8. An employer may file his complaint with the Silk Association 

of America and the above methods of arbitration in reverse shall 

apply. 

9. Except as hereinabove provided the rules of the American 

Arbitration Society shall govern. 

ARTICLE VIII-SALESMAN'S INTEREST IN Hrs AccouNTS 

The employer and salesman ennunciate the policy that an account 

acquired by or given to a salesman shall create a salesman's interest 

in the salesman with respect to said account for a period of six 

months. Such interest shall entitle a salesman to commissions on 

all sales between said account and employer, whether it be contracted by said salesman, employer, or any other person. This interest shall cease at the end of said six-month period, or upon the 

termination of the relationship of employer and salesman in accordance with the first three subdivisions of the succeeding article. 

ARTICLE IX-TERMINATION OF RELATIONSHIP 

The relationship between the salesman and employer may be terminated in the following ways only: 

1. By mutual consent in writing. 

2. By decision of a Board of Arbitration. 

3. By terms of a written contract. 

4. Should contract in writing fail to provide for termination, or 

in the absence of a written contract, on the expiration of thirty 

days after written notice by the employer to the salesman by registered mail. 

ARTICLE X-ENFORCEMENT 

Salesmen may form associations, adopt rules and regulations, set 

up organs for the enforcement of this code and for the prosecution 

of violations thereof. 

ARTICLE XI-EFFEOTIVE DATE 

This code shall become effective on the tenth day after it has been 

approved by the President of the United States. 

This code is submitted in behalf of the Silk and Rayon Fabric 

Salesmen's Association, Inc. 

Respectfully submitted. 

MAx LEVINSON, EsQ., 

Attorney for Associaiion, Office & P. 0. Address, 

5f1 Fifth .Av,enue, Borough of Manhattan, OiJty of New York. 

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